39825931
Description
Flashcards by Kyra Louthan, updated 3 months ago
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Created by Kyra Louthan
3 months ago
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| Question | Answer |
| Breakeven Point | The point at which the seller has covered all expenses and cost of a unit and has not made any profit or suffered any loss. Every unit sold after the Breakeven Point will bring some profit/loss |
| Contribution Margin | The difference between selling price (S) and variable cost (VC) The difference goes 1st to pay off total fixed cost (FC); when they are covered, profit/losses start to accumulate |
| Cost | The price retailers pay to a manufacturer/supplier to bring the goods into the store |
| Dollar Markdown | original selling price-new selling price |
| Dollar Markup | selling price - cost |
| Fixed Cost | Costs that don't change with increase or decrease in sales, they include payments for insurance, business license, rent, lease, utilities, labor, and so on |
| Gross Profit | The difference between the cost of brining the goods into the store and the selling price |
| Margin | The difference between the cost of brining the goods into the store and the selling price |
| Markdowns | Reductions from the original selling price caused by seasonal changes, special promotions, style change, etc. |
| Markup | The difference between the cost of brining the goods into the store and the selling price |
| Net Profit (Net Income) | The amount remaining after subtracting the cost of goods and the operating expenses from the sale of the goods |
| Operating Expense (Overhead) | The regular expenses of doing business, such as rent, wages, utility, insurance, and advertising |
| Percent Markup on Cost | Dollar markup divided by the cost; thus, markup is a percent of the cost |
| Percent Markup on Selling Price | dollar markup/ selling price |
| Perishables | Goods or services with a limited life |
| Selling Price | The price retailers charge consumers |
| Variable Cost | costs that do change in response to the change in the volume of sales; include: payments for materials, some labor, etc. |
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